Kasbah Resources Limited (ASX:KAS) announced that it will receive AUD 1,300,000 in a round of funding on October 1, 2019. The transaction will include participation from existing investor Pala Investments Limited. The company will issue a senior secured convertible loan bearing interest of 12% per annum up to December 31, 2019 and 15% per annum from January 1, 2020 to maturity date. The loan will mature on December 31, 2020. The loan is convertible into common shares at a fixed conversion price of AUD 0.05 per share. The company will receive funding in two tranches. The first tranche of AUD 800,000 will be received following shareholder approval and the second tranche of AUD 500,000 will be received on or after June 1, 2020. The company may repay some or the entire loan at any time prior to maturity subject to conversion rights and a prepayment fee. The transaction is subject to shareholders' approval.